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Negotiating with the Chinese: a socio-cultural analysis


  • Ghauri, Pervez
  • Fang, Tony


China has been one of the most favorite markets for Western firms for the last decade. However, doing business with China is considered difficult, mainly because negotiating with Chinese counterparts is quite complex. This paper analyses the negotiation process with China from a socio-cultural perspective. A Swedish multinational, Ericsson, is followed for several years and its negotiation process for different Chinese projects in the telecommunication industry is studied in depth. Based on these cases and literature a model is developed and some conclusions are drawn. Finally, managerial implications presented as four Ps: Priority, Patience, Price and People sum up the essence of Chinese business negotiation process.

Suggested Citation

  • Ghauri, Pervez & Fang, Tony, 2001. "Negotiating with the Chinese: a socio-cultural analysis," Journal of World Business, Elsevier, vol. 36(3), pages 303-325, October.
  • Handle: RePEc:eee:worbus:v:36:y:2001:i:3:p:303-325

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    References listed on IDEAS

    1. Hoon-Halbauer, Sing Keow, 1999. "Managing relationships within sino-foreign joint ventures," Journal of World Business, Elsevier, vol. 34(4), pages 344-371, January.
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    Cited by:

    1. Li, Shenxue & Scullion, Hugh, 2010. "Developing the local competence of expatriate managers for emerging markets: A knowledge-based approach," Journal of World Business, Elsevier, vol. 45(2), pages 190-196, April.
    2. Ramasamy, Bala & Goh, K.W. & Yeung, Matthew C.H., 2006. "Is Guanxi (relationship) a bridge to knowledge transfer?," Journal of Business Research, Elsevier, vol. 59(1), pages 130-139, January.
    3. Ahammad, Mohammad Faisal & Tarba, Shlomo Y. & Liu, Yipeng & Glaister, Keith W. & Cooper, Cary L., 2016. "Exploring the factors influencing the negotiation process in cross-border M&A," International Business Review, Elsevier, vol. 25(2), pages 445-457.
    4. Jing Yang & Frank Tipton & Jiatao Li, 2011. "A review of foreign business management in China," Asia Pacific Journal of Management, Springer, vol. 28(3), pages 627-659, September.
    5. repec:spr:manint:v:46:y:2006:i:6:d:10.1007_s11575-006-0122-6 is not listed on IDEAS
    6. Khakhar, Priyan & Rammal, Hussain Gulzar, 2013. "Culture and business networks: International business negotiations with Arab managers," International Business Review, Elsevier, vol. 22(3), pages 578-590.
    7. Al-Khatib, Jamal A. & Malshe, Avinash & AbdulKader, Mazen, 2008. "Perception of unethical negotiation tactics: A comparative study of US and Saudi managers," International Business Review, Elsevier, vol. 17(1), pages 78-102, February.
    8. Cichosz Izabela, 2016. "Negotiation Differences between China and Poland," Journal of Intercultural Management, De Gruyter Open, vol. 8(3), pages 55-68, September.
    9. Lee, Peter K.C. & Humphreys, Paul K., 2007. "The role of Guanxi in supply management practices," International Journal of Production Economics, Elsevier, vol. 106(2), pages 450-467, April.
    10. Fong, John & Burton, Suzan, 2008. "A cross-cultural comparison of electronic word-of-mouth and country-of-origin effects," Journal of Business Research, Elsevier, vol. 61(3), pages 233-242, March.
    11. Latukha, M. & Veselova, A. & Selivanovskikh, L. & Artukh, E. & Mitskevich, E., 2016. "Re-thinking the role of talent management in a firm’s performance: Talent management practices and absorptive capacity," Working Papers 6442, Graduate School of Management, St. Petersburg State University.
    12. Irene Lehto, 2015. "International entrepreneurial selling as construction of international opportunities," Journal of International Entrepreneurship, Springer, vol. 13(3), pages 277-302, September.
    13. Yunxia Zhu, 2009. "Confucian Ethics Exhibited in the Discourse of Chinese Business and Marketing Communication," Journal of Business Ethics, Springer, vol. 88(3), pages 517-528, October.
    14. Fainshmidt, Stav & White, George O. & Cangioni, Carole, 2014. "Legal Distance, Cognitive Distance, and Conflict Resolution in International Business Intellectual Property Disputes," Journal of International Management, Elsevier, vol. 20(2), pages 188-200.
    15. Fang, Tony & Worm, Verner & Tung, Rosalie L., 2008. "Changing success and failure factors in business negotiations with the PRC," International Business Review, Elsevier, vol. 17(2), pages 159-169, April.
    16. Chuah, Swee-Hoon & Hoffmann, Robert & Larner, Jeremy, 2014. "Chinese values and negotiation behaviour: A bargaining experiment," International Business Review, Elsevier, vol. 23(6), pages 1203-1211.

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